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[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product.

Direct materials (30 Ibs. @ $4.40 per Ib.)	$	132.00
Direct labor (6 hrs. @ $14 per hr.)		84.00
Factory overheadVariable (6 hrs. @ $8 per hr.)		48.00
Factory overheadFixed (6 hrs. @ $11 per hr.)		66.00
Total standard cost	$	330.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		35,000		40,000		45,000
Standard direct labor hours		210,000		240,000		270,000
Budgeted overhead
Fixed factory overhead	$	2,640,000	$	2,640,000	$	2,640,000
Variable factory overhead	$	1,680,000	$	1,920,000	$	2,160,000

During the current quarter, the company operated at 90% of capacity and produced 45,000 units of product; actual direct labor totaled 266,000 hours. Units produced were assigned the following standard costs.

Direct materials (1,350,000 Ibs. @ $4.40 per Ib.)	$	5,940,000
Direct labor (270,000 hrs. @ $14 per hr.)		3,780,000
Factory overhead (270,000 hrs. @ $19 per hr.)		5,130,000
Total standard cost	$	14,850,000

Actual costs incurred during the current quarter follow.

Direct materials (1,333,000 Ibs. @ $6.20 per lb.)	$	8,264,600
Direct labor (266,000 hrs. @ $12.50 per hr.)		3,325,000
Fixed factory overhead costs		2,443,000
Variable factory overhead costs		2,287,000
Total actual costs	$	16,319,600

Problem 21-4A Computing materials, labor, and overhead variances LO P3, P4

Required: 1. Compute the direct materials cost variance, including its price and quantity variances. 2. Compute the direct labor cost variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances.

Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.)

Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.)

Actual Cost								Standard Cost

Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)

Actual Cost								Standard Cost

Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

Controllable Variance
Actual overhead
Budgeted overhead
Controllable variance

Compute the volume variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

Fixed overhead volume variance
Budgeted fixed overhead
Fixed overhead cost applied
Fixed overhead volume variance